Overview
Owner-user financing, net-lease, and 1031 debt sit at the corner where operating-business credit, real-estate underwriting, and tax planning meet. This hub aggregates the pillar guide, sibling Q&As, the owner-user SBA sizing tool, and glossary terms across SBA 504/7(a), conventional bank, sale-leaseback, CTL, and 1031 mechanics. Not tax or legal advice.
Why this matters
Owner-user, sale-leaseback, CTL, and 1031 share a common DNA: the operating business's credit and the real-estate underwriting are linked. The right answer almost always lives at the intersection of capital cost, balance-sheet strategy, and tax outcome.
Picking the wrong structure on day one, SBA 504 vs. 7(a) vs. conventional, sale-leaseback vs. mortgage, CTL vs. real-estate first, costs basis points and balance-sheet flexibility for the entire hold period.
How to use this hub
Start with the pillar for the framework. Use the SBA sizing calculator for owner-user decisions and the 1031 debt replacement calculator for exchange deals. Drop into the Q&A library for specific structures (SLB, CTL, dark-store risk). Reach the glossary for SBA, CTL, SLB, and 1031 terms.
Pillar guide
Sponsor-side tool
Sibling Q&As
What financing options does an owner-user have for commercial real estate?
Owner-user sponsors choose between SBA 504, SBA 7(a), and conventional bank financing based on occupancy, loan size, and credit profile.
When should an owner-user choose SBA 504 vs. SBA 7(a)?
SBA 504 wins on long-term fixed-rate real estate; SBA 7(a) wins on smaller deals, working-capital integration, and faster execution.
How is the SBA 504 CDC debenture priced?
The 504 debenture rate is set monthly by SBA based on the 10-year Treasury plus a spread for guarantee, servicing, and CDC fees. Pricing is published monthly.
What is the SBA owner-occupancy test for CRE financing?
SBA 504 and 7(a) require the operating business to occupy at least 51% of an existing building (60% on new construction, ramping to 80% within 10 years).
When does a sale-leaseback beat conventional owner-user financing?
Sale-leasebacks open 100% of property value but trade ownership and capex control for a long-term lease obligation. The decision turns on the operating.
How does credit-tenant-lease (CTL) financing work?
CTL financing sizes off the tenant's corporate credit, not the property. Used for net-lease deals with investment-grade tenants.
How does the tenant's corporate bond spread set CTL pricing?
CTL loan pricing tracks the tenant's senior unsecured corporate bond spreads at comparable tenor, with a 25-75 bp adjustment for the secured-mortgage.
What are the typical pricing bands for NNN net-lease financing?
NNN net-lease loan pricing varies by tenant credit, lease term, and property quality. IG tenant + 15+ year lease + generic box prices tightest; non-rated.
How does 1031 debt-replacement work for an owner-user 1031 exchange?
IRC §1031 requires replacement debt to be equal to or greater than relinquished-property debt to defer all capital gain.
How does the debt stack work on a DST 1031 exchange?
Delaware Statutory Trust (DST) 1031 replacement properties typically come with pre-arranged senior debt. Investors inherit the loan terms; their equity.
How do lenders underwrite imputed rent on owner-user CRE?
Conventional lenders underwrite owner-user CRE on imputed market rent (what a third-party tenant would pay) rather than the operating business's cash flow.
How do lenders price dark-store risk on net-lease CRE?
Dark store risk, tenant bankruptcy or lease rejection causing the property to go vacant, is the central downside in net-lease underwriting.
Glossary
SBA 504
SBA 7(a)
Credit-tenant lease (CTL)
Sale-leaseback (CRE)
1031 debt replacement
Delaware Statutory Trust (DST)
Dark store
Imputed rent (owner-user)
SBA 504, long-term fixed owner-user
How SBA 504 structures a 50/40/10 owner-occupied deal: bank first mortgage plus CDC debenture plus sponsor equity. 2026 pricing on the 25-year fixed.
Commercial mortgages for properties you plan to hold
Compare bank, life insurance company and other permanent financing options for stabilized commercial real estate.
Tell us about the property and the financing you need
Send a commercial real estate financing request. Marshall Masterson replies within a timeframe agreed after reviewing the request with proceeds, structure and lender fit. Confidential.